Foundation Capital Leads Series A Round, Backed by Tishman Speyer
Lumber, the AI-powered construction workforce management platform, announced a $15.5 million Series A funding round led by Foundation Capital, with participation from Tishman Speyer, Carbide Ventures, 8VC, Sure Ventures, and FirsthandVC.
This funding round follows a year of rapid product development, including the launch of eight new products, strong momentum with specialty contractors and construction partners, and strategic team expansion with key industry experts.
AI-Driven Efficiency: Streamlining Operations and Eliminating Tedious Tasks
Lumber’s platform empowers construction firms by automating time-consuming back-office functions, allowing them to focus on strategic, high-value work. Leveraging cutting-edge AI, Lumber offers intelligent scheduling, automated compliance monitoring, and adaptive payroll processing that expertly handles complex union regulations. This shift signifies a substantial reduction in administrative overhead for construction contractors, freeing up valuable man-hours previously consumed by tedious documentation. This leads to a greater allocation of resources towards core construction activities, ultimately driving increased productivity and enhanced project profitability.
“Lumber is the essential solution that understaffed back offices desperately need,” said Shreesha Ramdas, Founder and CEO of Lumber. “Our intelligent platform empowers companies of all sizes to efficiently manage their workforce, ensure compliance, and significantly reduce administrative burdens.”
The funding will fuel Lumber’s product development and market expansion, with a focus on enhancing its AI capabilities and scaling its customer success operations. Lumber is developing autonomous AI agents that interact with real-time digital representations of construction sites, enabling companies to optimize operations, improve safety and compliance, and reduce costs and inefficiencies. These agents include:
- HR AI Agent: Manages hiring, onboarding, and training for construction workers.
- Payroll AI Agent: Automates wage calculations, tax deductions, benefits management, and multi-state payroll compliance.
- Safety AI Agent: Ensures OSHA compliance, tracks worker fatigue, and prevents overexertion.
Foundation Capital and Industry Leaders Back Lumber’s Vision
The construction industry faces significant challenges, including a persistent skilled worker shortage, with 80% of firms reporting difficulties finding qualified employees (AGC). McKinsey’s “Construction’s digital transformation” report indicates that full adoption of digital technologies can improve project performance by 10-15%, reduce costs by 5-10%, and increase productivity by 15-20%.
“We are on the verge of a labor crisis in the construction industry and really all skilled labor sectors in America,” said Zach Noorani, Partner at Foundation Capital. “Lumber removes the complexities of payroll, compliance, and HR operations for construction firms. But critically the Lumber platform is also built for the construction worker, helping them build safe and thriving careers in the trades. The more Lumber grows, the more they help fortify one of our most important industries.”
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